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Explain why a negative externality in production results in too much of the good being produced...

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Economics

Explain why a negative externality in production results in toomuch of the good being produced from society's perspective, whereasa positive externality results in too little being produced. How,according to Pigou, might such over- and under-allocation ofresources be corrected?

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There is an external cost involved in case of negative externality which is often goes unaccounted for Due to this reason the market supply or the private marginal cost as well as the market demand for    See Answer
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